Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Consumer Protection and Commerce, to which was referred H.B. No. 2064 entitled:

begs leave to report as follows:

The purpose of this bill is to protect 408A individual retirement account (Roth IRA) savings from creditors.

Your Committee heard testimony in support of this bill from a private citizen.

Your Committee notes that, in 1998, there was a special one-year incentive for rolling over traditional IRAs and qualified plan funds into Roth IRAs. Countless taxpayers with traditional IRAs availed themselves of this opportunity, without realizing that they were exposing previously exempt property to creditors' claims. This bill addresses that problem.

As affirmed by the record of votes of the members of your Committee on Consumer Protection and Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2064 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.